After a couple of tough months, the real estate sector south of the border appears to have gotten back on its feet in April, notching its strongest monthly growth in 7 years in terms of both Housing Starts and Building Permits. Is this just a weather-related bounce or a genuine rally? Upcoming data will help us know for certain, but for the moment, the news has been welcome for USD holders, with the greenback continuing to climb further against the major world currencies.
Bearish pressure on the euro is also helping strengthen the greenback, as the June 5 deadline for an agreement between Greece and its creditors is fast approaching. Athens has been adamant that without an agreement, the IMF won't see a cent.
In the meantime, Japan announced annualized GDP growth of 2.4% for Q1 overnight, marking the second straight quarter of growth. Today, we'll be keeping an eye on U.S. Crude Oil Inventories at 10:30 a.m.
- Range of the day: 1.2180 - 1.2290
Stéphane Goulet